Iconic Australian department store Myer could soon move out of its namesake centre in Adelaide after filing a lawsuit against its Singaporean landlord.
Myer sent property company YTL Starhill Global Real Estate Investment Trust a notice of arbitration earlier this week claiming it has the right to end its lease.
The department store claims YTL has let the Myer Centre in Adelaide disintegrate from its former glory with several stores in its upper levels standing empty.
The Adelaide Myer Centre was one of Australia’s most iconic shopping hubs when it was opened by then-South Australian premier John Bannon on June 3, 1991.
It was one of the most expensive buildings ever constructed at the time, costing $570million – more than $1billion in today’s money, the Adelaide Advertiser reports.
Myer is looking to end its lease at the Adelaide Myer Centre more than 10 years before its termination date (pictured is a Meter store at Bourke Street Mall, Melbourne)
Myer claims the landlord has left too many storefronts on the top floors of the Adelaide Myer Centre empty so customers mainly stick to street level stores (pictured, a Myer customer)
The original building featured six floors of specialty retailers and the Dazzeland amusement park, complete with a rollercoaster that spanned the top two levels.
However, Myer claims the centre is well past its glory days with several storefronts left empty and customers only spending time and money at ground-level retailers.
The department store currently occupies more than half of the shopping centre and has a lease with YTL that wasn’t set to expire until June 2032.
YTL, who have owned the Adelaide Myer Centre since 2015, said in a statement to the Singapore Stock Exchange that Myer’s claim is ‘ill founded’ and that it will ‘take all steps necessary to vigorously defend’ the action.
‘Under the Arbitration Claim, Myer alleges that the Landlord has breached, and is continuing to breach, the Myer Lease by maintaining the Myer Centre Adelaide in a condition whereby it is substantially empty of suitably presented retail stores,’ YTL said.
When approached by Daily Mail Australia for comment, a Myer spokesperson said: ‘As the matter is subject to legal proceedings, we will not be commenting further at this stage.’
It comes after Myer announced it would be abandoning its flagship store in Brisbane’s CBD after months of protracted negotiations with the landlord.
Myer announced last week it has decided not to renew its lease with plans to leave the space in July. The move came after a string of store closures around the country as part of the department stores’ consolidation strategy.
Myer’s flagship store in Brisbane’s CBD (above) will also close in July after the company refused to renew its lease
The Adelaide Myer Centre (pictured) was one of the most expensive buildings ever constructed at the time, costing $570million – more than $1billion in today’s money
Myer recorded a 24.2 per cent lift in sales to $1.884b for the 26 weeks to January 28, as net profit rose over 100 per cent to $65m, according to The Australian.
A Myer spokesperson said they were unable to reach ‘appropriate and reasonable commercial terms’ with the Brisbane landlord but were still committed to maintain a presence in Brisbane’s CBD.
Myer CEO, John King, said: ‘Whilst we remain committed to the Brisbane market, we have been unable to negotiate a reasonable commercial outcome with the landlord and as such will continue to look for an alternative CBD location.’
The company said staff will be able to work at other nearby stores.
Daily Mail Australia has contacted YTL for comment.
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